The investment firms will back VCs raising their first few funds, and co-invest in startups alongside those emerging managers. Inovia and Northleaf declined to disclose the size of the fund. (The Logic)

Talking point: The new Discovery fund comes as venture returns remain strained, making it especially hard for funds with less of a track record to raise money. It is an iteration of Inovia’s first Discovery fund, a $34-million vehicle launched in 2023 for early-stage VCs. Inovia backed 31 funds through the program, including Two Small Fish, The 51, Garage Capital and Founder Fuel. Inovia partner Karamdeep Nijjar said the firm teamed up with Northleaf this time around to take the initiative “to the next level.” Northleaf has a much broader fund-of-funds business, in which it invests in other VC funds, including through the federal government’s Venture Capital Catalyst Initiative.